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Why Nvidia (NVDA) Is Advancing Today

Nvidia (NVDA) is climbing slightly after investment bank Wedbush Securities predicted that the chip maker would deliver “clear beat-and-raise” financial results later this week.

Why Wedbush Expects Nvidia’s Results to Beat Expectations

The investment bank expects NVDA to report stronger-than-expected fourth-quarter financial results and raise its guidance when it reports its earnings on Feb 26.

“Enterprise driven demand is accelerating as more companies and governments…head down the AI yellow brick road,” the firm wrote.

Wedbush added that the demand for the company’s Blackwell chip ” is far outstripping supply.”

Wedbush noted that the capital expenditures of the Magnificent 7 companies, a large portion of which consists of AI investments, are expected to jump by about $100 billion this year

The investment bank also reported that it had not heard of any companies or government agencies reducing their purchases of Nvidia’s chips in order to switch to DeepSeek’s offerings.

Wedbush Expects NVDA to Continue to Benefit From the AI Boom

Generally, companies are spending 10%-15 of their budgets on AI, and NVDA should benefit from this trend, Wedbush believes. According to the investment bank, NVDA should also get a lift from Project Stargate, the $500 billion AI-infrastructure initiative being spearheaded by SoftBank (SFTBY) and Oracle (ORCL).

While we acknowledge the potential of NVDA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

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